BHI rig count not for the faint of heart

Baker Hughes Inc. issued its international rig count that showed 1251 rigs operating worldwide in March 2015 outside of the US and Canada. Unsurprisingly, global rig counts have dropped significantly due to an approximate 50% drop in crude oil prices since 2014.

North America had 1011 rigs working onshore and offshore in April 2015, a massive loss of 1018 compared to 2029 rigs in April 2014. Most of the loss came from oil-oriented rigs, which fell by 831 rigs to 703 rigs, compared to 1534 rigs a year ago. Comparatively, gas rigs fell by a mere 98, to 225 from 323 a year ago.

Most of the North American rigs fled from Texas, which lost a whopping 501 rigs, down to 393 rigs compared to 894 a year ago. The Permian basin was the biggest loser in the state, with 296 rigs fleeing the scene, followed by the Eagle Ford with a loss of 104. The second largest loss by state was in North Dakota, which lost 101 rigs, down to 78 compared to 179 in April 2014. The Williston Basin, which straddles several states including North Dakota, lost 108 rigs.

Conversely, the Cana Woodford play in Oklahoma increased its rig count by 18, up from 23 rigs in April 2014 to 41 rigs in April 2015.

Elsewhere, Canada lost 53 oil rigs, down to 16 from its April 2014 count of 69. The country’s gas rigs fell by 36, to 63 from 99 a year ago.

In March 2015, the international rig count, not including the US and Canada, was down 24 rigs from the 1275 rigs one month ago in February 2015, and down 94 rigs from one year ago, when 1345 rigs were at work in March 2014. Most of the international rigs were drilling on land (935 rigs), while 316 rigs were drilling offshore.

The overall rig count, including land and offshore, was led by the Middle East with 407 rigs, including 355 onshore rigs and 52 offshore. The regions overall rig count has remained fairly steady, year-on-year, compared to its March 2014 count of 401, including 350 onshore and 51 offshore.

Latin America had 351 rigs working in March, down significantly, by 55 rigs, from March 2014’s rig count of 406 rigs. The region had 284 onshore rigs and 67 offshore rigs in March 2015, compared to one year ago at 337 onshore and 69 offshore, so most of the rig loss was onshore.

Asia Pacific showed 233 rigs in March 2015, down 25 compared to one year ago at 258. The region had 131 onshore rigs, compared to 134 in March 2014, and 102 offshore rigs, compared to 124 in March 2014, so most of its rig loss was offshore.

Europe had 135 rigs working in March 2015, a loss of 13 rigs compared to one year ago when the rig count was 148. The region lost mostly onshore rigs, with 80 rigs working onshore in March 2015, compared to 93 in March 2014. Europe’s offshore rig count was the same as one year ago, at 55 rigs.

Africa claimed the lowest rig count in March with 125 rigs working, a fall of 7 rigs from 132 in March 2014. The region had 85 rigs onshore, a loss of 12 compared to 97 in March 2014, and 40 offshore, up 5 rigs from its count of 35 a year ago.